The Income-Based Repayment (IBR) Plan is designed to cap your required monthly payment at an amount that is affordable based on your income and family size. You must have a partial financial hardship to initially select the IBR Plan and to continue to make income-based payments. After 25 years of qualifying repayment, any remaining loan balance will be forgiven, but you may have to pay taxes on the amount forgiven. The IBR Plan is NOT available for repayment of Direct PLUS Loan(s) made to parent borrowers or Direct Consolidation Loan(s) that repaid Direct PLUS Loans or Federal Family Education Loan (FFEL) Program PLUS Loans made to parent borrowers. If you consolidate any parent PLUS loans into a Direct Consolidation Loan, the new Direct Consolidation Loan cannot be repaid under the IBR Plan. To participate in the IBR Plan, you must provide the Dept. of Education with information about your current income and family size each year.